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Indian Markets Rally: Crude Prices Pause, Bonds Ease
16 Sep
Summary
- Key equity benchmarks closed higher, ending a two-session losing streak.
- EPFO wage ceiling increased to Rs 25,000, benefiting 51 lakh employees.
- Global markets show mixed reactions ahead of the US Federal Reserve's policy decision.
Indian equity benchmarks concluded Wednesday on a positive note, snapping a two-session losing streak. This rally was attributed to a pause in crude oil prices and a slight easing in global bond yields. The Nifty 50 and S&P BSE Sensex experienced gains, with State Bank of India, HDFC Bank, and ICICI Bank providing support. However, gains were tempered by investor caution preceding the US Federal Reserve's policy decision.
In a significant economic development, the Union Cabinet approved an increase in the Employees' Provident Fund Organisation (EPFO) wage ceiling to Rs 25,000 per month from Rs 15,000, effective September 17, 2026. This revision is projected to extend social security coverage to an additional 51 lakh employees.
Globally, European equities advanced, and most Asian benchmarks ended higher. However, US indices experienced declines on Tuesday amid positioning for the Federal Reserve meeting and rising bond yields. The Federal Reserve is anticipated to announce a 25-basis point interest rate increase.
